Refurbishment change

A recent report from Savills highlights the changing nature of office schemes in regional cities.

Rising construction costs and slim margins are pushing developers towards refurbishments and the new trend is for a higher quality of refurbishments according to Savills. Nearly 40% of the pipeline of office schemes in regional cities will be delivered in the form of refurbishments.

A sustained level of demand for space in many of the regional cities alongside a lack of new office schemes, is boosting demand for refurbished office space. Landlords are turning to refurbishments to capture lettings from professional occupiers including lawyers, accountants and engineering firms.

As an example, Helical’s ongoing refurbishment of Churchgate House in Manchester which has transformed the building from part-occupied and unattractive to now being fully let. Occupiers have been attracted by a new reception incorporating touch down space, collaborative working areas and a high quality cafe.

Aviva is refurbishing 11 Portland Street, Manchester, which will provide single floors of up to 20,000 sq ft. The major refurbishment incorporates an entirely new principal reception area which has been repositioned to the corner of Portland Street and Aytoun Street.

Savills expect Bristol to be the next city to see a step change in demand for refurbished office space, driven by both a shortage of new build office space.

Metropolis has published business leads on 160 planned office schemes in London and regional cities over the last six months including details of developers and architect contacts, as well as timescales and any pre-lets. In addition Cityoffices.net includes details of all pipeline schemes, with full contact names and numbers.

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Cityoffices – A February 2016 Taster

Below is the February 2016 taster for http://www.Cityoffices.net – the sister leads provider to the market leading Metropolis Property Research.

With the office construction sector booming in London (current survey work by Cityoffices shows the number of active London schemes to be nearly 100) there is a huge volume of tenders being sought and awarded as every role from architects, planners and engineers to service consultants, letting agents and acoustic consultants are being appointed on a daily basis.

Looking back over February 2016 this Cityoffices bulletin looks at recent news of some of the schemes (there are dozens of applications and over 200 planning consents in the pipeline) which have progressed in the last month and some of the schemes which developers are likely to progress in the next 2-3 years. Upto 25 London stories are posted each month. The London news stories and many regional updates in February, are backed up with full project details, including teams and contact names,where appointed, on the database. This month included:

In London:

  • A consent for a refurbishment on a 200,000 sq ft City of London building;
  • A Midtown planning consent to form a 90,000 sq ft scheme;
  • A new application for a 20,000 sq ft office refurbishment in the West End;
  • A new scheme at a site on London’s Southbank;
  • A pre-let of an under construction office building in London, SE1;
  • A full office deal analysis for January 2016, including details of a wide range of recent lettings.

Outside London:

  • Construction start on a 260,000 sq ft Birmingham scheme;
  • A new application for a site in Bristol, where work could start this year;
  • A refurbishment underway of a 50,000 sq ft Cardiff office building;
  • News of some lettings agreed at a just completed scheme in Glasgow;
  • Construction start on a new office block in Edinburgh;
  • Progress on a major Leeds office refurbishment due for summer 2017 completion;
  • Application for a second phase at a fully let Manchester office scheme;
  • A Newcastle scheme secures a tenant

These are just a sample of the many office projects that Cityoffices reports on each month and backed up with full histories and contact names and numbers where available. No other information provider can match a fraction of Cityoffices’ coverage.

If you would like to know more about annual Cityoffices subscriptions from only £750 – email Andy King at andy@metroinfo.co.uk